HP asks iPhone-builder Foxconn for help making cheaper servers

Foxconn will help HP reduce supply chain costs for building cloud servers.

HP today said it's teaming up with Foxconn to build a new line of servers for service providers and cloud networks. Foxconn, perhaps most famous for its poor working conditions and for manufacturing iPhones and other consumer products, will help HP "deliver superior value throughout the supply chain." In other words, Foxconn will help HP lower the cost of building servers, resulting in (hopefully) cheaper machines for customers.

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HP and Foxconn will cement their partnership with a "non-equity joint venture" that takes effect tomorrow. The companies didn't release any details on pricing or availability of the servers they intend to build.

HP has also worked with Foxconn to build PCs and investigated working conditions at the Taiwanese company in 2010 after employee suicides in its Chinese facilities.

The venture announced today will produce a "new line of cloud-optimized servers specifically targeting service providers," HP said. "The new product line will specifically address compute requirements of the world’s largest service providers by delivering low total cost of ownership (TCO), scale, and service and support. The line will complement HP’s existing ProLiant server portfolio, including Moonshot."

HP mentioned that hosting models are moving toward infrastructure-as-a-service, which provides virtual servers on demand over the Internet and was popularized by Amazon Web Services.